2020 will be remembered as the year in which oil prices reached negative values. From those lows, however, a rise began that brought him back to the $ 50 area. However, in 2021, oil could exceed the $ 80 mark and launch towards historic highs.
That the health of oil is good is also evident from the macro data that have circulated in recent weeks. In particular, inventory data was better than analysts’ forecasts.
Graphical and forecast analysis on oil
The Petroleum (real time price) closed the session on December 31st at 48.52 dollars, up 0.25% compared to the previous session. The week, on the other hand, ended with a drop of 0.6% compared to the previous weekly close.
As can be seen from the graphs below, the December close was very important for the long term. If on the one hand, in fact, the prices have come closer and closer to the II price target on the monthly in the 53.54 dollar area, on the other hand the very strong resistance in the 46 dollar area has been broken upwards on the quarterly report (I price target ) opening the doors to the achievement of the II price target in the 84.8 dollar area.
Therefore, in 2021 oil could exceed the threshold of 80 dollars and launch towards historical highs, but we must not overlook the resistance in the 53.54 dollar area at the monthly close.
The most probable scenario, therefore, is that the rise will continue undisturbed up to the $ 53.54 area where we should see some profit taking before the restart towards the $ 80 area.
Only a monthly close of less than 40 dollars would undermine the bullish scenario.
Time frame mensile
Oil: bullish projection underway on the monthly time frame. The red oblique lines represent the Running Bisector levels; the horizontal lines the levels of The New Law of Vibration. On the left, the volume for each price level is shown. The middle panel reports BottomHunter’s signal. The minimum on the considered time frame is marked when it is equal to 1. The volume panel shows the volume traded for each bar compared with a 20-period zero lag exponential moving average. The Swing Indicator is shown in the lower panel showing the bullish and bearish signals on the instrument in question.
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Time frame trimestrale
Oil: bullish projection underway on the quarterly time frame. The red oblique lines represent the Running Bisector levels; the horizontal lines the levels of The New Law of Vibration. On the left, the volume for each price level is shown. The middle panel reports BottomHunter’s signal. The minimum on the considered time frame is marked when it is equal to 1. The volume panel shows the volume traded for each bar compared with a 20-period zero lag exponential moving average. The Swing Indicator is shown in the lower panel showing the bullish and bearish signals on the instrument in question.
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Deepening
Will 2021 be the year of redemption for the ENI title?
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